Dark Alleys

clipped from www.realclearmarkets.com It's become apparent from recent events that America's political, business and scholarly elites have fundamentally misjudged China. Conflicts with China have multiplied. Consider: the undervalued renminbi and its effect on trade; the breakdown of global warming negotiations in Copenhagen; China's weak support of efforts to prevent Iran from acquiring nuclear weapons; its similarly poor record in pushing North Korea to relinquish its tiny atomic arsenal; the sale of U.S. weapons to Taiwan; and Google's threat to leave China rather than condone continued censorship. Greater conflicts and a collision of national egos seem inevitable. No longer should we sit passively while China's trade and currency policies jeopardize jobs here and elsewhere. Political differences between the countries are increasingly hard to ignore. But given China's growing power -- and the world economy's fragile state -- a showdown may do no one any good. Miscalculation is leading us down dark alleys.